PROPERTY MARKET 2016 - wtwy.com

1 PROPERTYMARKET2016C H Williams Talhar & Wong (WTW) established in 1960, is a leading real estate services company in Malaysia & Brunei (headquartered in Kuala Lumpur) operating with 24 branches and associated Harold Williams established C H Williams & Co, Chartered Surveyor, Valuer and Estate Agent in 1960 in Kuala Lumpur. In 1974, the company merged with Talhar & Co, a Johor-based Chartered Surveying and Valuation company under the sole-proprietorship of Mohd Talhar Abdul Rahman.

2 With the inclusion of Wong Choon Kee, in a 3-way equal partnership arrangement, C H Williams Talhar and Wong (WTW) was founded. At the present time, the Group is headed by Chairman, Mohd Talhar Abdul Rahman who guides the group on policy developments and identifies key marketing strategies which have been instrumental in maintaining the strong competitive edge of WTW. ABOUT WTWThe current Managing Directors of the WTW Group operations are:C H Williams Talhar & Wong Sdn Bhd Mr Foo Gee JenC H Williams Talhar & Wong (Sabah) Sdn BhdMr Leong Shin YauC H Williams Talhar Wong & Yeo Sdn Bhd (operating in Sarawak)

3 Mr Robert Ting Kang SungC H WILLIAMS TALHAR & WONGPROPERTY MARKET 2016 TABLE OF CONTENTSGLOSSARY / ABBREVIATION94 SIGNIFICANT TRANSACTIONS95 WTW INTERNATIONAL NETWORKMESSAGE FROM MANAGING DIRECTORMALAYSIA IN 20154 Economic Overview5 Infrastructure Overview7 PROPERTY OverviewFEATURE ARTICLES 13 The Industry In Malaysia19 11th Malaysia Plan: Infrastructure & Affordable Housing Development24 MARKET Performance & Outlook for the Oil Palm SectorSECTORAL REPORT 30 Landed Residential Sector42 Wtw Malaysia House Price Indicator Map44 High-Rise Residential Sector55 Purpose Built Office / Shopoffice Sector66 Retail Sector75 Hotel Sector83 Industrial Sector2C H WILLIAMS TALHAR & WONGPROPERTY MARKET 2016our report gives the widest private sector enterprise coverage of the Malaysian PROPERTY MARKET .

4 It is our privilege to be able to report on the PROPERTY MARKET situation and to present our outlook on the MARKET for 2016 right from the ground. 2015 saw further consolidation of the MARKET with fewer new projects coming on stream. Despite flat MARKET sales and falling number of transactions and occupancy rates, PROPERTY prices continued to escalate driven by rising costs and further aggravated by the implementation of GST in April 2015. Generally, housing developers are keeping their prices at the high levels reached by strategically launching lesser number of units.

5 These high levels are critically beyond the affordability levels of first time buyers. While such levels may remain sustainable in the short term without downward adjustments in the high growth development areas due to additional external and non-domestic interests in Malaysian PROPERTY MARKET , developers can be expected to review their offerings to meet the affordability levels of domestic demand for owner-occupied houses and acceptable level of returns from buy-to-let houses.

6 With the Malaysian Economy being further battered by the twin shocks of plunging oil and commodity prices and the Ringgit Depreciation by almost 35% in 2H2015 it is understandable that performance in almost all regions and in all PROPERTY sectors was lacklustre during the year. The outlook is expected to remain cautious going into 2016 generally. We however expect better days ahead in a number of projects and in certain regions where there are greater private sector / corporate / foreign driven investment and development in manufacturing and industrial production following the infrastructural initiatives undertaken by the Government.

7 Industry and manufacturing has always been the primary engine of economic growth. It is a robust and thriving industrial and manufacturing sector that propels the services and construction industries which in tandem underpin the health and sustainability of the overall PROPERTY MARKET within the infrastructure projects in the Klang Valley in particular are on schedule for completion and consequently, sales and development activities in the residential sector continue to drive the overall MARKET in this region as expectations for capital appreciation remain optimistic.

8 On the flip side, this tend to push up land prices making the problem of providing affordable housing ever more these concerns in mind, we have highlighted the development of infrastructure and the issue of affordable housing in our review of the 11th Malaysia Plan. We have also devoted some effort to reflect on the performances of the plantations sector and the MICE Industry in anticipation of their relevance and interest to our clients and DIRECTORC H WILLIAMS TALHAR & WONG SDN BHDMESSAGE FROMMANAGING DIRECTORSR FOO GEE JENBRANCHES & ASSOCIATE OFFICES.

9 24 WITH3C H WILLIAMS TALHAR & WONGPROPERTY MARKET 2016 NOTABLE AGENCY DEALS CONCLUDED BYWTW IN 2015 The WTW Group advised and facilitated the conclusion/sale of a number of notable PROPERTY transactions as follows:Prime Industrial PROPERTY , Persiaran Jubli Perak, Section 22, 40300 Shah Alam, SelangorTransacted Price : RM240 millionLand Area: hectaresDate of Sale : March 2015 Prime Industrial PROPERTY , Persiaran Sabak Bernam, Section 26, 40300 Shah AlamTransacted Price: RM50 millionLand Area: acresDate of Completion : November 2015 Iskandar Waterfront City Berhad through its wholly owned subsidiary, Bayou Management Sdn Bhd, made a successful bid for a development land for RM 165 million in a Tender Exercise conducted by WTW.

10 The PROPERTY which is freehold and has obtained SBKS 2 Approval is located adjoining to the east of The Seed @ Sutera Utama, Johor Bahru, Iskandar Malaysia, Transacted Price : RM156 millionLand Area : acresDate of Sale : April 2015 Lot 392, Jalan Changkat Kia Peng, Kuala LumpurSale Price : millionLand Area: 2,917 sq metreDate of completion : October 2015 Sale of Development Land in Kluang, Johor Transacted Price: millionLand Area : 935 acresDate of Sale : 2014 / 2015234561 Bandar Malaysia is a 486-acre development on the former Sungai Besi Air Force base.